Question 201.78 pts

Which of the following words is a synonym for finance risk?

Group of answer choices

quantifiable

expected

uncertainty

predictable

Flag question: Question 21

Question 211.78 pts

Which of the following is a synonym for investment risk?

Group of answer choices

volatility

expected

uncertainty

quantifiable

Flag question: Question 22

Question 221.78 pts

What is risk aversion?

Group of answer choices

higher return involves higher risk

higher risk should be avoided

higher risk involves lower return

higher return involves lower risk

Flag question: Question 23

Question 231.78 pts

One of your friends is a Bible major. He or she has just attended an investment seminar. They were informed that the company putting on the seminar is offering an investment that has superior return potential with risk that is below most investments. Your thought about this is:

Group of answer choices

It is a terrific ground floor opportunity;

Most good investments have superior return potential and lower risk

Most good investments that have superior return potential have higher risk

The company offering the investment probably has some good employment opportunities

Flag question: Question 24

Question 241.78 pts

What is a relative return?

Group of answer choices

It is a % return

It is a return compared to the return of another investment

It is a return earned by someone in your family

It is a return that depends on the return of another investment

Flag question: Question 25

Question 251.78 pts

Stock A has an expected return of 20% and an expected standard deviation of 15%. Stock B has an expected return of 12% and an expected standard deviation of 6%. The risk-free rate is 3%. Which stock has a superior risk-adjusted return (Sharp ratio) and what is that risk-adjusted return? I. Stock A II. Stock B III. 5% IV. 35% V. 1.13% VI. 6% VII. 9% VIII. 1.5%

Group of answer choices

I & IV

II & IV

I & V

II & 7

II & VIII

Flag question: Question 26

Question 261.78 pts

Because you took Mr. Sloans investment class, you had the insight to buy Intel at $40. The stock is now $72 plus it paid a $2 dividend. Your holding period return is:

Group of answer choices

80%

82%

85%

32%

34%

Flag question: Question 27

Question 271.78 pts

What is the % change in year 1?

Group of answer choices

19%

59.4%

1.594%

159.4%

37.3%

Flag question: Question 28

Question 281.78 pts

What is the % change in year 2?

Group of answer choices

-21.6%

-78.4%

-27.5%

-11%

1.275%

Flag question: Question 29

Question 291.78 pts

What is the CAGR for the 4 year period of time?

Group of answer choices

25.74%

150%

250%

35.72%